Behavioural Insights Projects

Saving while being overdrawn costs consumers money. The interest they have to pay is far more than the interest they receive. An experiment tested two interventions aimed at encouraging consumers to use their savings to clear any overdraft, by pre-entering a repayment amount and giving explicit information about costs. These interventions lead to better choices amongst many, although not yet all, consumers. Why this experiment was conducted: saving while being overdrawn costs Dutch citizens…

Institution: Dutch Authority for the Financial Markets (AFM)

The study investigates minimum requirements and options for standardisation of energy offers and bills that ensure increased clarity and comparability, and puts forward better alternative “bill designs”. The study also examines the main factors discouraging energy consumers from switching, with a focus on the impact of exit fees in this decision. Finally, price comparison tools (PCTs) in the energy sector are examined and (independent) verification schemes for such tools are identified.

Institution: European Commission

Team: JRC Competence Centre on Behavioural Insights

Electricity bills are a key way to inform people about their plan and usage, but bills can be confusing and are not really useful to help people navigate the electricity market. BETA and the Department of the Environment and Energy ran a trial to test the impact of bill design on people’s confidence in their ability to look for a better offer and intention to do so. We drew on behavioural insights to design and test six electricity bills. We focussed on simplifying bill design to draw…

Institution: Prime Minister and Cabinet (PMC)

Team: Behavioural Economics Team of the Australian Government (BETA)

To reduce calf mortality rates, the Netherlands Food and Consumer Product Safety Authority (NVWA) developed various letters for distribution amongst three subgroups of dairy farmers. The impact measurement shows that calf mortality decreased in the overall target group, although the letters did not produce any measurable outcomes. Why this experiment was conducted: calf rearing necessitates a significant amount of care Failure to ensure appropriate care for animals in dairy farming operations…

Institution: Netherlands Food and Consumer Product Safety Authority

Landfills are a major contributor to methane emissions in the United States. By diverting organic waste from landfills, composting may reduce the global warming effects caused by methane. However, only a small proportion of compostable food is currently composted. This is because of barriers to composting that are both structural (lack of public composting infrastructure) and psychological (insufficient knowledge about and interest in composting among prospective users). We set out to develop a…

Institution: Duke University

Team: The Center for Advanced Hindsight

Challenge Research suggests that some students—including low-income, underrepresented minority, and first generation students—avoid applying for financial aid due to a combination of psychological reasons. Some are overwhelmed by the complexity of the process, while others worry they’ll feel out of place in college or be stigmatized for their socio-economic background. These psychological factors can cause students to avoid applying for aid, or fail to complete their financial aid…

Institution: Ideas42

Team: Ideas42

To reduce the speed of motor vehicles on the Yarze highway, Nudge Lebanon, in collaboration with the Traffic Management Centre (TMC), placed a salient image of overlooking eyes, coupled with a message informing drivers that their speed was being monitored on a Variable Message Sign (VMS). Vehicles in treatment time slots, with speeds above 100km/h reduced their speed by around 11.5% compared to similar vehicles in the control group. Moreover, compared to the control group, the treatment was more…

Institution: Nudge Lebanon

Team: Nudge Lebanon

Are people more likely to file their tax returns correctly if they receive a thank-you in advance or afterwards? Analyses show that thank-you messages have no effect on compliance behaviour. Why this experiment was conducted: positive alternative sought To encourage citizens' tax compliance (i.e., paying their taxes on time and correctly), it is occasional practice to emphasise the risk of checks and fines in case of non-compliance. One drawback of this deterrent method is that it can damage…

Institution: Dutch Tax and Customs Administration

- There is need for organ donors. - According to public opinion polls, approximately 84% of Canadians support organ and tissue donation but only 43% report to have registered.[1,2] - In British Columbia, Canada, Internal operational data indicates that, between 2016 and 2017, 24,303 organ donation registrations took place through Service BC centres. This number dropped to 14,860 in 2019. - Considering these circumstances, Service BC has partnered with the BC Behavioural Insights Group to develop…

Institution: British Columbia Behavioural Insights Group (BC BIG)

Team: British Columbia Behavioural Insights Group (BC BIG)

Avoiding electrical waste and promoting the manufacture of and demand for sustainable electrical products are key goals for the Federal Government. To this end, transparency for consumers is to be improved. Whether a lifespan label for electrical products can help achieve this aim was tested in an empirical study. The findings show that a lifespan label would lead to 3 out of 100 consumers opting for a more expensive product with a longer lifespan. When the lifespan was combined with information…

Team: Behavioral Sciences Team